Negotiate Winning Deals

Recently I read an article that discussed negotiating with hotels and there was a very strong bias to the meeting planner. I was so angry that a favorite magazine would print something that did not present both sides and I am a meeting planner! The fact is that businesses may agree to terms that don’t protect them but they set up assurances that are outside of the agreement. For instance, if you want a block of 100 rooms for 3 nights and your history shows the most you have ever used is 80, the hotel may bind themselves to hold 100 rooms and honor that commitment if it materializes however, they “blind cut” your block and hold 80 rooms out of inventory so they have a more realistic accounts receivable forecast. Many hotels will hold a net block but honor the full contracted block if needed. This practice will be impacted further if there is an agreement that there will not be any attrition. So often we only think of attrition as a shortage of rooms utilized by the group and we don’t often hear of the hotel not being able to honor the full block.

 Yes, I believe we all want to achieve the best deal but the real goal is to come away with a deal where both sides win and there is an equal investment in the outcome of the meeting. Hotels need to make a fair profit so they can properly staff your meeting and keep the property maintained. Relationships matter so working with someone you trust is rule #1. How long has this person been with the hotel and when do they turn the details to the convention service manager? Ask for client references not just on the hotel but the person you are negotiating with. Be prepared to write a personal recommendation when they deliver stellar results.

It really starts with providing a clear and succinct request for proposal and knowing the value of your meeting. Start with the “must haves” and provide points of flexibility. Hotel sales people often look at the number of rooms you need and the requested meeting space and they don’t drill down much further than that. This may be all the information you need initially and you will see the timeliness and style of creativity from each sales manager.

Providing history on the meeting will help the sales manager verify the details. Be aware that your history is also a blueprint of your anticipated rate structure. Many times a request for proposal inflates the number of guest rooms needed which offsets the ratio of proportionate meeting space. The need for a lot of meeting space may be a deterrent for a hotel because the hotel needs meeting rooms to sell remaining rooms to other groups.

Right sizing your venue so you are the largest group in house helps you to maximize attention from the entire staff. This also provides flexibility in the meeting space you need. Give back space that is not needed so the hotel has an opportunity to earn additional revenue with their real estate. Every square inch of the property has a potential revenue value and when a room “goes black” there is no potential of making up for the lost income at a later date.

KEY FACTORS

1. The pattern of your meeting. City hotels have the highest demand Sunday – Thursday nights so you may get better rates on the weekends. Resorts have the highest demand on weekends because the vacationer will usually require a Saturday night stay. Your history will provide a good gauge of pre and post meeting night stays which will be communicated but I recommend only blocking those rooms that you know will be required with the clause that the group room rate will be provided on a space available basis.

2. Time of year. Every property has a busy season, shoulder season and value season so expect to pay more when demand is high. That same property may have a more affordable time of the year and you will get all the same amenities without the crowds.

3. Guest room type. We all know the rooms next to the elevator or a view of the dumpster are less desirable and they should be priced accordingly. In a “Run of Hotel” block, there is a mix of each room type so be aware that you may have a better rate and sacrifice the comfort of your attendees. Ask to see the worst room when you do a site inspection because the hotelier is only showing their best available.

4. What is included? I don’t know about you but I hate when I stop for gas and the advertised rate is for cash only. I feel ripped off as soon as I swipe my card. The same is true at a hotel. Find out what all of the add-on fees are to the room. We all need internet access and many may need parking. The meeting room set ups may have additional charges as well so ask about standard sets and any upgrades you may require.

Look at the total cost of a meeting and not just the room rate. When you find the right property, build a relationship with the key players and their boss. They have the power to make you look great. Let them know that they have earned your business and in exchange for providing the agreed outcomes you will be happy to provide three things.

• Repeat business

• References

• Referrals

 The relationships that you build in this business become an extension of your team. I have been in the hospitality industry for almost 30 years and I have friends in all corners of the planet as a result. It is so rewarding to be able to get so much done with the help of industry professionals who chose to make a difference. Being transparent about your needs will provide a foundation for a successful meeting and a rewarding career. Contracting with an independent meeting planner such as A2Z Meetings & Events is a sure way to leverage great relationships and save time, money and aggravation so you can focus on what is important … the MEETING!

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